Russia hardens EU resolve to seek new energy supply

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London, Aug 7: Renewed tension between Russia and Belarus has yet to disrupt energy flows, but still it has sharpened Western Europe's desire to curb dependency on Moscow if it possibly can. Russia last week postponed its threat to hold back gas after Belarus paid a first instalment of a $456 million debt accrued since Moscow more than doubled the price of gas to Belarus in January this year.

By Tuesday, Belarus had paid two thirds of the debt, according to state television. Analysts do not dispute that Russia has a strong economic argument for raising energy prices, but say the brinkmanship has still been damaging. "The most important consequence will be further nervousness in the West that Russia cannot be relied upon as a supplier," said Dieter Helm of Oxford University. This latest flare-up recalled a more serious pricing dispute in January 2006 when Russia cut off supplies to Ukraine, with the knock-on effect of reducing supplies to Europe during peak winter demand. That had already focused the European Union on finding alternatives to Russia, the world's biggest gas producer and exporter and second largest exporter of oil after Saudi Arabia.